Galerie Living Secures $140M Recap for Atlanta Senior Housing

Galerie Living is recapitalizing a senior housing community in Atlanta with a $140 million loan.

It will be covered via a 10-year Freddie Mac senior loan, and the first five years will include interest-only payments. This was considered the “first-ever Freddie Mac senior preferred equity hard pay structure for a seniors housing asset,” according to Newmark, which arranged the financing from Kayne Anderson Real Estate Debt.

“This one-of-a-kind loan is a testament to the extraordinary quality and strong performance of Corso Atlanta, as well as to the caliber of our sponsor,” Sarah Anderson, senior managing director at Newmark, said in a statement.

“Our team is proud to have successfully navigated this complex financial structure to completion, setting a precedent in the seniors housing finance sector. We look forward to continuing our long-standing relationship with Galerie and reinforcing their dedication to excellence in senior care.”

The asset, known as Corso Atlanta, is located at 3200 Howell Mill Road and features 203 luxury units. Plans and services in the community include assisted living, independent living, and memory care. Amenities at Corso Atlanta consist of a heated pool, a fitness center, a salon, a floral shop and gift boutique, outdoor spaces, and dining options.

In the senior living space, the supply is not meeting the demand in the current state of the market. As a result, in the third quarter, occupancy increased by 70 basis points from 85.8 percent in the three months through June and annual average rent growth is 4.2 percent, according to a recent report from NIC MAP Vision, which observed data for 31 primary markets.

Galerie’s principal investment arm has more than $750 million in assets under management, which includes one million square feet of real estate, concentrated on senior housing. Along with Atlanta Corso, Galerie’s portfolio includes Village Park, a 128-unit senior apartment community in Alpharetta, Georgia.